Use the Following to Answer the Questions Below

question 10

Multiple Choice

Use the following to answer the questions below.
A company that is introducing a new product has to choose between three different manufacturing methods,referred to as methods A,B,and C.Depending on the demand for the product,they have forecast different levels of revenue for the year (values are in thousands) .The company has identified three possible states of nature for economic growth,and named them High,Medium,and Low.
Table A.2
-Using the information in Table A.2,which alternative is best in accordance with a decision criterion of maximax?

• A)A
• B)B
• C)C

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, serving as a starting point for further investigation.

Skin Conductance

A measure of the electrical conductivity of the skin, which varies with moisture level due to sweat gland activity, often used as an indication of emotional or physiological arousal.

Fear

A basic, intense emotion that involves a natural response to a perceived threat.

Experimental Research

A method of research in the social sciences in which a controlled experimental factor is subjected to special treatment for purposes of comparison with a factor kept constant.